Many have heard about building completion certificates. But they need to gain knowledge of how important a building completion certificate is, and let’s get to know more about it.
A building completion certificate is a required legal document stating that a new building has been finished and erected under all safety norms and regulations under the Buildings Act 2004. The builder must get a No Objection Certificate (NOC) from civic and municipal authorities while the project is being built.
After a comprehensive inspection of the building, the local authority (the development authority, municipal corporation, or panchayat) grants a completion certificate. It, therefore, assures the consumer that the construction work was completed in compliance with the established norms and approved plans.
What Is the Importance of the Building Completion Certificate?
This certificate proves that the builder followed the National Building Code of India, 2005. The Floor Space Index (FSI), the fundamental structural height of the structure, and many more factors are evaluated before this certificate is granted.
Additionally, this certificate is required to provide the building with necessities like electricity and water. Moreover, the water tariff in residential construction is only changed from non-domestic to domestic after acquiring a building completion certificate.
What Happens If a Builder Does Not Have a Certificate of Completion?
The builder must obtain a completion certificate to begin processing paperwork, including home loans and property taxes. Buyers can contact municipal officials without a completion certificate, or locals can establish a Resident’s Welfare Association (RAW). These steps will only aid purchasers or residents in hastening the receipt of the completion certificate.
In avoidance of any legal issues, it is advised for locals to purchase property from builders that have a completion certificate. The builder must submit a specific sum as a security deposit to apply for a completion certificate. The money is reimbursed if no rule violates.
What Is the Importance of the Completion Certificate for Homebuyers?
A building completion certificate is frequently considered exclusive to developers or builders. Whether the builder has a building completion certificate or not is another factor that home buyers frequently need to pay more attention to. However, the buyers must also have a building completion certificate.
- A completion certificate ensures that the buyer is not residing in the illegal property.
- The initial step in obtaining an occupation certificate is to obtain a certificate of completion. It is against the violation of law for someone to live in a building without an occupation certificate.
- A house’s building completion certificate guarantees a steady flow of water and electricity.
- Only after receiving a building completion certificate can it claim the property tax benefits.
- A building completion certificate is required for residential buildings to switch from non-domestic to domestic water rates.
- A purchaser risks fines or possibly eviction from the property by the authorities without a building completion certificate.
- If someone wishes to sell the property in the future, it won’t be easy to find a buyer without a completion certificate.
Authorities may permit a person to live in a building without a building completion certificate if the majority of construction work has already been done and will finish the property soon. It may occur with initiatives stalled for a while for many reasons.
At the same time, the buyer can go to local authorities for a completion certificate if the developer does not give them a building completion certificate.
Information Provided in the Completion Certificate
The details in a building completion certificate include all the information related to the construction, for instance.
- The name of the developer
- The information about the location
- The identification of the land
- The details about the approved building plan
- The height of the building
- The other information under the local building standards, such as distance from the road etc.
Provisional Completion Certificate
When most of the project’s work is finished, a provisional completion certificate will give to the developer, and giving possession to buyers becomes crucial. The developer must apply for the final certificate after the construction is finished because this one is only valid for six months.
What Is the Procedure for Obtaining the Project Completion Certificate?
After completing the building project, a builder can apply for a project completion certificate. The local municipal authorities, such as a municipal corporation or local development authority, must receive applications from the builders. Only after assessing the construction and the authorities provide the completion certificate.
Certain documents are required for a completion certificate. However, the documents may vary from state to state, and every state has a different set of documents, generally requesting certain documents.
- Duly filed application form
- Building completion certificate by an engineer or a licenced architect
- The building plan approval letter
- Structural safety certificate from a concerned technical authority
- Property tax receipts
- A NOC from the fire department
- NOC for lift installation, if applicable
- NOC for the sewage system
- NOC for the water supply plan
- Certificate for electric supply
- Affidavit for provisional completion certificate (if applying for a provisional completion certificate)
- Any other document or declaration, if applicable
What If a Developer Does Not Have a Building Completion Certificate?
You should always request the completion certificate for residential construction when purchasing a home from a developer. The property is considered legitimate in the eyes of the government when it has a completion certificate for construction. It also guarantees the delivery of water and electricity.
Builders cannot apply for or give you an occupation certificate without a building completion certificate, and without occupation, it is forbidden to occupy the property. The authorities may issue you a fine or eviction notice.
Additionally, you will require a building completion certificate to claim tax advantages related to the mortgages. It will also be necessary when you sell your property or apartment again. Therefore, purchasing that property can be risky if the builder cannot give you a completion certificate.
Difference between a Completion Certificate and an Occupancy Certificate
An occupancy certificate issued by the local civic authority attests to the fact that a building has been constructed under building construction certificate standards and is equipped with all necessary amenities, including the NOC from the fire department. This certificate grants the property’s suitability for human habitation. Before moving into a new house, the owner must have a certificate of occupation.
On the other hand, a building completion certificate attests that the building was built under the approved building layout and the standards established by the local authorities, including the building’s height and distance from the road, and other things. You must have a building completion certificate to apply for basic power and water delivery services.
Obtaining a building completion certificate is the first certificate after completing the construction of a real estate project. It precisely acknowledges that the structure complied with the following steps and confirms that the building meets the requirements for habitation. Only after obtaining the completion certificate can a developer obtain an occupation certificate.
When buying a home from a developer, is it important to ask for the building completion certificate? A building completion certificate makes a real estate project legal in the eyes of the authorities and ensures a simple and smooth water supply and electricity. Without a building completion certificate, the builder cannot apply for and offer you an occupation certificate.
Additionally, moving into a property without an occupancy certificate is illegal. In such a case, you have a penalty or eviction notice from the local authorities.
Furthermore, you will need a building completion certificate to claim the income tax benefits of your home loan, which will also be required when reselling your house. Therefore, it can be risky if the builder or property owner cannot provide you with a building completion certificate for such a property.
What is a building completion certificate?
After thoroughly evaluating the buildings, a building completion certificate is awarded by the local authority (the development authority, the municipal corporation, or the panchayat).
Can I sell a house without a building completion certificate?
No, a completion certificate is a legal proof that building work has been inspected by the development authority and complies with safety norms. The document is essential for selling or mortgaging a house.
What should I apply for first? A building completion certificate or an occupation certificate?
You should apply for a building completion certificate first, which certifies that the builder has followed the building plan and all other regulations in the construction project.
Should I claim a building completion certificate from the developer?
Yes, you can and definitely. A building completion certificate makes sure that the construction is legal, and it also ensures that you will be getting basic amenities and that you are living in a safe home.
Is a building completion certificate necessary for the registration of the property?
No, a building completion certificate is not necessary to register a real estate property. However, it guarantees the property's legal status and ensures that the buyer does not face any legal actions from the authorities in the future.